Top Tips To Help You Save Up For A Car

*This is a collaborative post on tips to help you save up for a car

Buying a car is a huge investment, so you will likely need to save a bit of money before you take the plunge. 

You do have different options when it comes to buying a car such as using finance or buying outright. Even if you do choose to finance your purchase, you will still need to have a large deposit to keep monthly repayments down and you will also need to cover the cost of insurance, road tax and general maintenance.

If all this seems a bit overwhelming, saving should be a priority. Here are some tips to help you get your dream car. 

Set a monthly savings goal

Start by doing some research into cars you like. This will give you a good idea of how much you are willing to spend. Once you have a maximum amount in your mind, you can work backwards and figure out how much you need to save.

Timescales are important too. You need to be realistic about how long it will take you to save. For example, if you need £2,000 you may want to save £200 per month. This means you will have the necessary funds in 10 months. If you can wait longer, you can save more and reduce your financial repayment burden further. 

Save up for a car and buy used

In a dream world, a shiny new car is the most exciting option. However, this is not realistic for most people. Used cars can be just as good as a new car but at a much more affordable price.

As with a new car, make sure you do your research. Although there are some great deals on online marketplaces, you do risk buying a dud with no recourse. It is therefore better to go through a reputable dealership. 

Whether you are buying a used car in Sheffield or Southampton, take time to check it over to ensure you are buying a reputable model.

Reduce your current spending

Saving in general is hard, so take a good look at your spending habits. You may find areas where you can cut back. 

Use comparison sites such as Uswitch to make sure you are paying the cheapest price possible for utilities. You could also look at whether you need all your subscriptions for streaming services. You may be able to cancel some, saving you a few extra pounds each month. 

Consider a side hustle to help save up for a car

If you have tried everything else and are still not saving as much as you would like, why not consider a side hustle?

You want something that fits around your main job but isn’t so strenuous that it burns you out. You could offer your services as a local dog walker. Not only will this bring in some money but you can then cancel your gym membership from all the exercise!

If you cast a critical eye over your home, you may notice things that you no longer love that you could sell. Reselling sites, such as Vinted and eBay, are good ways to earn a bit more money while ensuring your belongings find another loving home.